Should You Buy BlueScope Steel Ltd at This Share Price?

Bluescope Steel shareprice
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What happened to the BSL share price?

BlueScope Ltd [ASX:BSL] was up strongly in today’s trading. The ASX was higher from the previous day, with most of the gains locked in at the open. The European and the US markets were mixed overnight. Today, Asian markets are also mixed, with Shanghai slightly down.

Why did BSL shares do this?

BSL is one of the best performing stocks in the last 26 weeks. This qualifies BSL as a strong momentum stock. However, the fundamentals of BSL are also very strong. The average rating on the stock is ‘Outperform’. Market analysts see rising top-line performance in the company this year and the next. They also anticipate a positive growth in earnings.

The company has a fairly cheap P/E multiples. Its beta is higher than the market. It pays a dividend, which increases the overall return in the stock. The payout ratio of this dividend is however below industry average.
The company enjoys a bigger-than-one current ratio and a low level of debt. These are good signs of low liquidity and low credit risks.

What now for BSL?

BSL has been on my trading portfolio this week. Its positive performance this week continues to make it attractive. However, some of its movements this week were attributed to the beta. BSL is not a top momentum stock in the ASX universe; I usually switch in and out of the stock between different periods. I recommend investors to remain agile on the stock.

Ken Wangdong
Emerging Market Analyst, New Frontier Investor

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Ken Wangdong

Having spent half of his life in Australia and the other half in China, Ken is a man of two worlds. He’s fluent in English and Mandarin, and has first-hand experience living, working and investing in both countries. As Money Morning’s emerging markets analyst he uses this cross-border intelligence to discover the best investment opportunities in not just China, but all emerging markets around the world.
Ken Wangdong is Money Morning’s emerging markets analyst. Having spent half of his life in Australia and the other half in China, Ken is a man of two worlds. He’s fluent in English and Mandarin, and has first-hand experience living, working and investing in both countries.

This rare cross-border insight gives Ken a powerful inside advantage when it comes to uncovering the best investment opportunities in China.

And that’s key. Because you cannot hope to invest successfully in this fast growing super power without a guide to help you navigate the cultural, political and historical factors that deeply influence the way they do business.

But China isn’t the only place Ken searches for big growth opportunities — he looks at all emerging markets around the world. Whether it’s Indonesia, Burma, Bolivia or Mongolia, Ken is passionate about hunting down exciting investments in the markets that will drive the next stages of global growth.

With two degrees in economics and finance from a prestigious Australian university, Ken has worked for a number of high-profile research, consulting and financial services firms both here and in China.

Now Ken brings his unique expertise in cross-border intelligence to Money Morning, where he helps readers discover the best investment opportunities in emerging markets across the globe.

Official websites and financial e-letters Ken writes for:

(You can find a list of recent articles written by Ken below.)

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Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to letters@moneymorning.com.au